Yes, it is certainly true that mutual fund managers have come up with restrictions that keep people from making as much money as they should. By these restrictions they hope to maintain their fees on at least a shrinking amount of money, even though they may be doing a terrible job of managing it.

Of course, the question I always ask is "If I am smart enough to know to sell your fund, why don't you take corrective action by raising cash or buying puts?" Yes, of course many funds are not allowed to buy puts or any other options, but who made those rules? The lazy and greedy fund managers.

A good 401K would probably allow investments in a large number of ETFs, but the fund companies give the company kickbacks. I wonder if that has any influence?

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